Blockchain

Blockchain technology to be used in cars too, as automobile giants become the first to run tests

The previous year witnessed something that can undoubtedly be called a year of extravagant growth for an asset class in just one year. Such tremendous growth has undeniably never been seen before ever in history. It would be difficult to point out one specific reason for this tremendous growth as a number of factors were behind the rise of the emergence of this digital currency market, but the most crucial factor which was behind this growth has to be credited to the always developing, innovative technology known as the Blockchain Technology. Cryptocurrencies, which began the year with a combined market cap of $17.7 billion back in 2017, saw again which was just shy of $600 billion by year’s end, this was good enough to see a remarkable 3,300{0ac728dcd10a1f0848214f193583cf4c3e1220f6f1fb6dafa5951ff14c482376} increase in its value.

The numerous possibilities of Blockchain Revolution

By now given its increasing popularity we are sure most of you may be aware of how the Blockchain technology functions. But for those who have just recently discovered this platform blockchain is basically a digital, distributed, and decentralized ledger which is mostly moderated for cryptocurrencies which are accountable for logging all transactions. It completely eliminates the Involvement of any financial intermediary. So basically Blockchain is a platform which provides its users (people or businesses) a unique and completely new way to send funds without having to use traditional banks as the middlemen.

Blockchain first gained a lot of attention globally way back in 2009. Nine years ago, when the Digital Currency Bitcoin made its debut. The Blockchain technology was first designed with the perspective of fixing a few existing glitches which include paying off the outrageous amount of transaction fees, lengthy processing and settlement times all within the banking system. What Blockchain does is that it completely removes banks from the equation and in the process eliminating a key transaction fee and validating transactions processed over blockchain networks 24 hours a day, seven days a week. Also if the network provides proper assistance some Blockchains are even capable of performing cross-border payments within the wink of an eye, as compared to the process of having to wait for up to five business days with the current banking system. Initially launched as an application to serve the sole purpose of solving currency-based issues, blockchain has continued to outgrow itself and has evolved far beyond its currency-only applications. Since realizing its enormous potential businesses are now looking at how blockchain can be beneficial for supply chains. The transparent and stagnant nature of blockchain is an ideal platform tracking the shipment of goods in real time, it can also be used to determine the performance of products during quality-control tests. Other ventures which seek to gain improvement and efficiency include the idea of using blockchain-based IDs for protecting our digital identities, also talks of using the blockchain for protecting our medical records and in turn improving HIPAA privacy laws have materialized.

Well, these are just a gist of what is yet to come, the most revolutionary blockchain ideas, however, are perhaps just being realized. Could you have imagined a digital currency based blockchain technology being used by automotive companies for vehicles? Stunned right? Well yeah so were we when we first discovered this revolutionary news.

Blockchain technology in automobiles. Yeah, you read that right.

Earlier in the previous month precisely on February. 22 (NASDAQOTH: VLKAY), high-performance sports car, sedan, and SUV manufacturer Porsche, a part of Volkswagen revealed that are the first car company in the world, in collaboration with German start-up XAIN, to successfully integrate blockchain and test it in a car as well.

How can blockchain possibly be used for a car? As per Porshe, they believe it could have numerous applications. Say, for instance, Blockchain does not require for data to be processed through a server. Thus, locking and unlocking your vehicle, as well as opening doors, through an app could be done nearly six times faster through blockchain. So in the process, an automobile technically becomes part of the blockchain, in an offline situation as well.

Along with this feature, blockchain keys would also be utilized to give access to third parties, such as valets or authorized mechanics. XAIN’s feature of using Ethereum-based smart contracts — protocols that verify, facilitate, or enforce the negotiation of a contract – shall make it possible to set customizable but immutable rules which enable selected parties to access the vehicle at specific times or locations.

In-car blockchain could also be used for paying parking or vehicle charges securely and with ease.

Looking into wider horizons top officials at Porsche believe they can take full advantage of the blockchain and provide its users with an improve autonomous driving experience. The basic idea here is that local data gathered through user blockchains, which the user would have complete control over sharing, could be shared securely with other vehicles, which would then lead to learning effects making the autonomous driving experience safer for all connected automobiles.

Challenge for Blockchain implementation in vehicles have only just started

Porsche are undoubtedly the first who have tested blockchain in their vehicles, however, they are not the only ones to have been curious with the idea of using this revolutionary technology in their vehicles. Porsche’s parent company are also working in tandem with IOTA with the aim of implementing IOTA’s blockchain for transforming the entire sector.

We cannot ignore the fact that just a couple of years ago Volkswagen was removed from a major diesel emissions scandal in the United States which left a damaging impact on the image of Volkswagen. This can prove to be the ideal scenario for Volkswagon where they can rebuild trust with their American customers. By adopting the highly transparent and immutable blockchain technology, they will be providing their consumers access to quality control testing data for parts and/or vehicles. It is also rumored that Volkswagen looks to build on Porsche’s early success by examining what blockchain can do for all of its future autonomous vehicles.

Another German automobile giant BMW also seem to be using the blockchain as a way to reinstate their reputation which was also damaged following the allegations on them of cheating on diesel-emission tests.

On February 26th  the VeChain cryptocurrency through its YouTube foundation announced its rebranding, VeChain Thor (previously VeChain before its rebranding) also confirmed their partnership with BMW (NASDAQOTH:BMWYY) in this presentation. They, however, didn’t give out any specifics regarding their partnership with BMW it is most likely that BMW would be a clear winner due to this partnership as they would benefit from supply chain efficiencies by implementing blockchain.

The biggest obstacle to the blockchain-automobile partnership.

In recent years due to scandals and quality-based recalls it has given rise to major trust issues between the customers and automakers. Blockchain seems to provide that ray of hope which automakers were looking to solve this issue. However, even after passing a successful test a major obstacle that blockchain has yet to overcome is whether it can be globally accepted and implemented on a large-scale.

As we already seen, Porsche was successful in testing blockchain applications in their vehicles, while cryptocurrencies like Ripple, Ethereum, and Stellar have already displayed a preview of how they could promote the settlement of payments over their blockchain-based networks quickly and efficiently. What is yet to be seen is that so far no major brand-name businesses are stepping forward to fully embrace blockchain as their main supply chain app.

Even after nine years of Blockchain being viral, it is still arguably in its early stages for us to predict anything with utmost certainty. For now, the big question we’ll be asking in 2018, and most probably in 2019 as well, is whether we’ll go beyond simple proof-of-concept testing and into the real-world implementation of this technology. If plans do materialize and we do actually move forward, blockchain would undeniably be a game-changer within a span of maybe three to five years. Although if it does not materialize, it’ll just turn out to be another overhyped bubble which will most probably burst.

 

About the author

Safdarali Rizvi

Safdarali Rizvi the management graduate. Has been an avid book reader all his life so naturally loves playing with his words. His curiosity for discovering futuristic opportunities lead him to explore the world of cryptocurrencies. He has a real passion for calisthenics and sports. His management abilities and hunger for learning brings tremendous value to our team.

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